HLIB: AirAsia to gain if Malaysia Airlines cuts capacity

In its sectoral report yesterday, HLIB said the AirAsia group and its long-haul affiliate AirAsia X Bhd would gain higher market dominance and pricing power from Malaysia Airlines

PETALING JAYA: AirAsia Group Bhd is likely to benefit if Malaysia Airlines opts to cut its capacity for restructuring purposes, but would be “negative” to airport operator Malaysia Airports Holdings Bhd (MAHB), said Hong Leong Investment Bank (HLIB) Research.

The research house pointed out that the government is unlikely to close down the national carrier despite the losses, but would be looking for a strategic investor.